Brits plan to dip into savings this Christmas

Published on 1 January 1970 by Raffick Marday

Brits plan to withdraw £6 billion in savings to fund Christmas as gift-giving and rising winter fuel bills take their toll.

Research has found that a third of people plan on spending an average of £391 this Christmas, mainly on things like presents and food.

One in seven people will be withdrawing almost double the amount they withdrew at Christmas last year.

The research, carried out by Santander Savings, also found that it is not just presents and festive food that are prompting people to withdraw more.

It was also found that a third of people plan on dipping into their savings this year. 31% will do so to cover the cost of spiralling energy costs. This is equivalent to 10% of all Britons.

“The festive period is usually an expensive time, with many people dipping into their savings to cover the cost of presents as well as increased winter bills, and this year looks set to make a significant dent in the nation's savings,” said Matt Hall, Head of Savings at Santander.

Many consumers are turning to credit cards and savings accounts as a way of covering the cost of Christmas.

Santander is currently offering customers its Upfront Interest Bond, to help cover the cost of Christmas debt repayments.

The bank is offering £1,000 upfront for every £12,000 that savers deposit into the bond for three years.

"For many people, even those who have money set aside in the bank for a rainy day, accessing savings to cover costs over and above their usual outgoings is difficult. The Santander Upfront Interest Bond gives people more control over their money at a time when they really need it,” added Mr Hall.

“Savers keen to see an immediate return on their savings will be rewarded up-front with £1,000 net interest for every £12,000 deposited.”

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